Co-Pricing: Co-Creating Customer Value Through Dynamic Value Propositions

16 Pages Posted: 23 Jul 2015 Last revised: 31 Dec 2015

See all articles by Pennie Frow

Pennie Frow

The University of Sydney - Discipline of Marketing

Richard Reisman

Teleshuttle Corporation

Adrian Payne

UNSW Australia Business School, School of Marketing

Date Written: June 11, 2015

Abstract

Using co-pricing as a means for gaining deep customer insights offers much potential, ultimately expanding profitability and markets. Models of co-pricing could provide new basis for segmenting customers, based on their perceptions of value. Involvement in co-pricing decisions can also offer opportunities for enhancing relationships, building trust, fairness and commitment between a supplier and customer. A firm can develop value propositions and use them as part of a dynamic learning process that occurs between customer and supplier. Customer segments can be determined based on value perceptions, with each requiring discrete value propositions that are designed around relationship goals. Breakthrough opportunities relating to the special challenges of digital services are highlighted.

Keywords: co-creation, co-pricing, value, value propositions, dynamic, pricing, pay what you want, digital products, segmentation, relationship marketing, customer relationship, fairness, FairPay

JEL Classification: D40, D46, D51, D61, D64, L14, L82, M31

Suggested Citation

Frow, Pennie and Reisman, Richard and Payne, Adrian, Co-Pricing: Co-Creating Customer Value Through Dynamic Value Propositions (June 11, 2015). Available at SSRN: https://ssrn.com/abstract=2634197 or http://dx.doi.org/10.2139/ssrn.2634197

Pennie Frow

The University of Sydney - Discipline of Marketing ( email )

Sydney, New South Wales
Australia

Richard Reisman (Contact Author)

Teleshuttle Corporation ( email )

20 E 9th St.
New York, NY 10003
United States

Adrian Payne

UNSW Australia Business School, School of Marketing ( email )

Sydney, NSW 2052
Australia

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